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Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

Overtime without high production will hurt your shop's profit

Joe Marconi
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  • 1 year later...

Sell your car with CarBrain


Sell your car with CarBrain


Sell your car with CarBrain

3PuttFever Enthusiast

3PuttFever

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Joe, you make terrific points. I find payroll and motivation to be my largest challenge outside of finding good, reliable talent. I have spoken with accountants, read article after article, and even spoke with the US Department of Labor about payroll, FLSA and overtime. Unless you're a dealer you cannot pay Flat Rate to your Technicians as their only means of income that is exempt from overtime. If you're an independent shop you can pay a guarantee but if your staff work more than 40 per week you MUST pay overtime. Any overtime also needs factored into any production bonus. It's a hard formula to create. I'm going to lower my hourly rate to my guys and pay them a higher per hour rate when they eclipse labor hours in a pay period. It's going to upset one of my longest working Techs because he's comfortable with his hourly and overtime income. The hustle is gone from his step, thinking, attitude. Wondering what flat labor hours per week we should be using as a threshold. 

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dstremski Rookie

dstremski

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Getting your techs to maintain a consistency in work flow is always a battle and probably has much to do with  individual habits. My approach has been to create a good work environment with employee communication. ( Taking time to talk with employees about their interests / family.  Compensation: I have chosen to use a lower hourly rate with a higher commission based on book hours. Shop hours are M-F , 8-5pm (40 hours) This gives techs a full weekend / family time.  Shop worked many years 6 days per week and longer hours. In today's environment I found it better to totally end overtime.  

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  • 1 month later...
3PuttFever Enthusiast

3PuttFever

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Been gone awhile so I assume your situation is no longer a concern. I put in place a higher per hour wage and commission structure that would allow for solid income IF they produce. I'm having an issue with my Store Manager, too. I feel my Techs are good when they're busy and my Shop Manager likes to socialize too much. I'm going to hire another Service Writer and likely fire my Manager. Get someone good in here that I can train and depend on when I need time off. I've had my Manager for three years and he's not increased performance or outcome one bit. Almost fired him this summer but gave him another chance. It's been six months and he has made insufficient improvements. It's hard because I care about the guy. 

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